Technical articles

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P2

IFRS 13, Fair value measurementIFRS 13 has required a significant amount of work by entities to simply understand the nature of the principles and concepts involved.

The definition and disclosure of capitalThis article is structured in two parts – first, it considers what might be included as the capital of a company and, second, why this distinction is important for the analysis of financial information.

Revenue revisited
This two-part article considers the application of IFRS 15, Revenue from Contracts with Customers using the five-step model.

Concepts of profit or loss and other comprehensive income
This article explains the current rules and the conceptual debate as to where in the statement of comprehensive income, profits and losses should be recognised – ie when should they be recognised in profit or loss and when in the other comprehensive income. Further, it explores the debate as to whether it is appropriate to recognise profits or losses twice.

Profit, loss and OCI
This article looks at what differentiates profit or loss from other comprehensive income and where items should be presented.

Impairment of financial assets
This article considers the International Accounting Standards Board’s proposals of new regulations for the impairment of financial assets. This is a current issue that is examinable in P2.

The Integrated Report frameworkIn 2013, the International Integrated Reporting Council (IIRC) released a framework for integrated reporting. The framework establishes principles and concepts that govern the overall content of an integrated report.

When does debt seem to be equity?
The difference between debt and equity in an entity’s statement of financial position is not easy to distinguish for preparers of financial statements. Many financial instruments have both features with the result that this can lead to inconsistency of reporting. This article explains the distinction between debt and equity and the key factors that determine whether an instrument is classified as debt or equity.

Lease – operating or finance?
Complex lease terms mean that it is often difficult to determine how they should be classified. We shed some light on the matter.

Bin the clutter
The effects of clutter have typically come in for little consideration by the preparers of annual reports. However, we discover how the phenomenon is increasingly under discussion, with initiatives recently launched to combat it.

What is a financial instrument? – part 1
The first part of two articles considers the definition of accounting for financial instruments. It establishes how those issuing financial instruments need to classify these as either financial liabilities (for example, loans and bonds) or equity instruments (for example, ordinary shares).

Not-for-profit organisations – part 1 Although many of the principles of management and organisation apply to most business models, not-for-profit organisations have numerous features that distinguish them from the profit maximising organisations often assumed in conventional economic theory. This article explains some of these features.

Not-for-profit organisations – part 2The second part of this article takes a specific and deeper look at charities, which are one of the more important types of not-for-profit organisations.

Impairment of goodwillThis article discusses and shows both ways of measuring goodwill following the acquisition of a subsidiary, and how each measurement of goodwill is subject to an impairment review.

Deferred taxThis article starts by considering aspects of deferred tax that are relevant to F7, before moving on to the more complicated situations that may be tested in P2.

Current issues
Use hot topics in financial reporting to formulate answers.

Study support videos

Groups with accounting standards
Lindsay Hoyle from Kaplan Financial focuses on the compulsory Question 1 about groups with accounting standards, looking at how to approach Part A (the technical requirement) and Parts B and C (the written requirements).Cannot access Youtube? Watch it here

Advice for students retaking examsThis video is about turning your exam fail into a pass at your next attempt. It suggests ways to reflect on where you went wrong, how to draw up an effective study plan, and practising exam questions.

ACCA embeds integrated reporting
Gareth Owen, ACCA qualifications development manager, outlines how the ACCA Qualification embraces the underlying principles of integrated reporting (IR). IR is a different way of presenting information about the business to its stakeholders and, as such, is a new and exciting development in financial reporting.

Exam technique

P2 – A guide to using the examiner’s reports
Guidance to help you if you are taking the P2 exam for the first time as this takes you through how to use the examiner’s reports as part of your revision phase as directed by the self-study guides. This document will help you to understand how you should be using the examiner’s reports to make the best use of them.

P2 – A guide to reflection for retake students
Guidance to help you if you are retaking the P2 exam as this takes you through the process of reflection using the examiner’s reports as directed in the retake guides. This document will help you to understand how you should be using the examiner’s reports to make the best use of them.

How to earn professional marksThis article explains what professional marks are, how they are awarded at the Professional level and to remind potential candidates how best to achieve these additional, and often crucial, marks.

P2 exam techniqueThe article focuses on issues of poor exam technique that often appear in the answers students submit for P2.